What's driving this shift?
Nearly one-third of investment advisors plan to allocate 20% or more of their clients’ portfolios to private markets in 2025, according to the latest findings from Hamilton Lane’s Private Wealth Survey. This marks a significant shift, with nearly 60% of respondents intending to allocate at least 10% of portfolios to private market investments next year. The survey, conducted globally among over 300 financial professionals, reveals a growing comfort level with these assets, driven by their potential for strong performance and diversification benefits.
The results represent a 15% increase from the previous year’s survey. Hamilton Lane’s head of private wealth solutions, Steve Brennan, noted that the data signals an expanding understanding of private markets’ wealth-creation potential.
“As we look ahead, we expect interest in the infrastructure space to continue to grow, and hope to see investors who describe their knowledge of the private markets as ‘advanced’ tick up even further,” Brennan said.
Infrastructure takes center stage
Private infrastructure is emerging as a key area for increased investment. Nearly 48% of advisors indicated plans to increase exposure to infrastructure in 2025, seeking to leverage factors such as durable cash flows and portfolio diversification. This aligns with a broader trend of growing investment interest in infrastructure. Private equity and private credit remain strong contenders, ranking second and third in terms of portfolio allocation.
The benefits of private markets, especially infrastructure, are becoming more apparent to investors. The sector’s high barriers to entry and competitive returns remain key factors driving its growing popularity.
Performance and diversification continue to be the primary drivers of interest in private markets, with 76% of advisors reporting that their clients view these investments as offering higher rewards compared to traditional stocks and bonds. These motivations have remained consistent with last year’s survey, with performance and diversification still ranked as top priorities.
Knowledge gap remains a challenge
Despite the increasing enthusiasm, a significant knowledge gap persists. While 63% of advisors now consider their understanding of private markets to be “advanced”—up from 55% last year—many still have only a beginner-level grasp of the asset class. This gap presents both challenges and opportunities. Advisors who deepen their expertise in private markets can strengthen client relationships, as 70% of respondents agree that offering private market investments helps to build stronger connections.
Educational resources, such as Hamilton Lane’s Knowledge Center and Chart of the Week, are helping close this gap and equip both advisors and clients with the tools needed to navigate the complexities of private market investing.
Generationally, private markets are most popular among Gen Xers (94%), Millennials (89%), and Baby Boomers (77%), while Gen Z and those aged 75+ show comparatively lower interest. Regionally, Asia Pacific and the Americas are leading the way, with over half of respondents in these regions expressing strong interest in private markets.
The online survey was conducted between October 29 and December 4, 2024, with 320 global respondents. These included professionals from private wealth firms, RIAs, family offices, and other advisory groups across regions such as APAC, Canada, EMEA, LatAm, the Middle East, and the US.
